Document Type : Research Paper
Abstract
The main objective of the economic decision-makers is to provide welfare for the society, and the sub-goals that economic policies aim to achieve are derived from it. The Central Bank did not deviate from this framework as it set its objectives to achieve the welfare of the Iraqi society. Therefore, it worked throughout the period after 2003 to provide the appropriate environment for economic activity. From reducing inflation and raising other achievements, but monetary policies pursued by the regional neighboring countries of Iraq desiring them to expand trade by devaluing their currencies, benefiting from raising and gnawing at independence of central bank through political interventions and placing the central bank within the list of political quotas, which affected activity Clearly productive economic, so this research revolves around this problem and tries to indicate the effects of the exchange rate policy and the volatility of this variable according to political desires away from the economic necessities governing it with those countries and reached results including that the regional neighboring countries, especially Turkey and Iran, are continuing to reduce The value of their currencies and that their trade is constantly expanding with Iraq and that there is a commercial conflict between them to acquire a larger share in the Iraqi market and this conflict exceeded the limits of commercial secrecy to public statements and here the Central Bank and the Iraqi government must take short, medium and long-term measures to protect local production and increase it by providing the appropriate environment It has to limit competing foreign goods and direct Iraqi economic life towards production instead of import, independence of the Central Bank must be protected and made away from political influences, as confirmed by the Constitution and Bank Law No. 56 of 2004 because is the court economy.